Suppose Country a Has a High Average Wage Level and a High

question 82

Multiple Choice

Suppose Country A has a high average wage level and a high level of output per person,while Country B has a low average wage level and a low level of output per person.Which country can benefit from trade?

• A)Only Country A can benefit.
• B)Only Country B can benefit.
• C)Both Country A and Country B can benefit.
• D)Neither Country A nor Country B can benefit.

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Definitions:

Growth

An increase in size, amount, or degree, often used in the context of business or economic indicators like sales, revenues, or GDP.

Receivables

Receivables are amounts owed to a company by its customers or debtors for goods or services delivered but not yet paid for.

Factoring

The financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in order to raise immediate capital.

Note Maturity

Note maturity refers to the date on which a debt instrument, such as a bond or promissory note, reaches its due date and the principal is to be paid to investors.